5/25/2021 8:55:47 AM GMT | By Anil Panchal
Gold trims Asian session losses but still in the red for second consecutive day.
US Treasury yields remain depressed for fourth day, inflation expectations recover.
Fedspeak defends easy money policies despite disagreement over inflation fears.
US data, Fed remain as the key catalysts.
Update: Gold extended its directionless price move for the third consecutive session and remained confined in a range around the $1,880 level, or just below multi-month lows touched last week. Investors have been scaling back their expectations for an earlier than anticipated Fed lift-off amid easing fears about runaway inflation in the US. This was evident from the ongoing decline in the US Treasury bond yields, which was seen as a key factor that acted as a tailwind for the non-yielding gold.
Fed’s Evans says easy monetary policy has his ‘full’ support
The recent rise in U.S. inflation is unlikely to lead to the kind of undesirably high inflation that some notable economists have warned about, Federal Reserve Bank of Chicago President Charles Evans said on Tuesday, reiterating his support for the Fed’s super-easy policy.
“I have not seen anything yet to persuade me to change my full support of our accommodative stance for monetary policy or our forward guidance about the path for policy,” Evans said in remarks prepared for delivery to a Bank of Japan conference.
Critics including former Treasury Secretary Larry Summers say the Fed’s promise to keep rates at their current near-zero level until the economy reaches full employment and inflation has reached 2% and is on track to exceed that level moderately for some time is a recipe for overheating the economy.
Gold Price Analysis: XAU/USD remains confined in a range below multi-month tops forexcrunch.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forexcrunch.com Daily Mail and Mail on Sunday newspapers.
Wall Street’s three main indexes remain under pressure after news about reducing stimulus by tapering bond purchases
Wall Street’s three main indexes remain under pressure after news about reducing stimulus by tapering bond purchases
May 23, 2021
For the week, the Dow Jones weakened -0.51%, the S&P 500 -0.43%, while the Nasdaq advanced 0.31%
U.S. policymakers started to talk about reducing stimulus by tapering bond purchases
Dallas Fed President Robert Kaplan said that tapering should start sooner rather than later
Wall Street’s three main indexes remain under pressure; the Dow Jones and the S&P 500 weakened on a weekly basis while the Nasdaq posted a minor recovery. According to the latest news, U.S. policymakers are ready to talk about reducing stimulus by tapering bond purchases, while Dallas Fed President Robert Kaplan said that tapering should start “sooner rather than later.”